21 Apr '17, 12pm

'Greenwashing' and why companies should avoid it

Some companies are manipulating the content of their public reports in order to make their operations appear ‘greener’. Dr. Gaia Melloni of the University of East Anglia, UK, led the study which examined a sample of firms involved in a pilot programme to produce integrated reports. These reports should were designed to communicate more concisely how a company’s strategy, governance, performance, and prospects – in the content of its external environment – lead to the creation of sustainable value. The reports should be balanced, including any relevant information, positive or negative. The findings, however, published in the Journal of Accounting & Public Policy , show that in the presence of the company’s weak financial performance, the integrated report tends to be significantly longer, less readable and concise, and more optimistic – therefore, less balanced – which sug...

Full article: http://www.energydigital.com/sustainability/greenwashing-...

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